The Role of 45Q Carbon Capture Incentives in Reducing Carbon Dioxide Emissions

The 115th Congress is considering tax incentives that would reduce CO2 emissions by tens of millions of tonnes annually, in the form of the FUTURE Act (S 1353) and the Carbon Capture Act (HR 3761).

The language in these bills would extend and expand Section 45Q of the U.S. tax code. Section 45Q provides a performance-based tax credit to power plants and industrial facilities that capture and store CO₂ that would otherwise be emitted into the atmosphere.